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Forex pairs in this Article » EUR/USD (Chicago) - EUR/USD trades close to immediate support maintaining heaviness ahead of the US GDP data releases and the ECB interest rate decision.


According to Jim Langlands from FXcharts, “the Euro held on to the support in the 1.3460/70 area today and climbed to as high as 1.3547 on the back of stronger than expected German industry orders (+3.3% v expectation of +0.5%) that reinforced expectations that the ECB will not cut rates at today’s upcoming meeting despite the recently released steep fall in inflation Earlier in the European session saw the release of the EU Services PMI (51.6 v 50.9 exp) which came in generally a little bit stronger than expected, with Germany leading the way (51.6 v 50.9 exp) while Italy was the only individual component below expectations (50.5 v 51.2 exp). A separate report showed that EU retail sales fell 0.6% in September, compared to expectations for a 0.4% decline but was largely ignored by the market. The upside for the Euro does look to remain somewhat limited, probably to around 1.3600, given the mixed nature of the momentum indicators, and although the ECB look unlikely to cut rates today, it appears that the outlook from Mario Draghi at the press conference will be rather dovish with a good chance the ECB could pull the trigger in December if the data remains weak.”

EUR/USD Technical Levels

Price action reveals the pair attempts to recover daily losses incurred so far after the continuation of a short-term bearish channel once reaching the 1.3540 zone. On longer-term perspectives, the pair extends parallel price action around monthly lows after the fall from the 1.38 front with primary and secondary trends diverging and the latter opposing the shorter term price movement. Offered at 1.3511, the pair oscillates between the supports aligned at 1.35 (October 2nd lows), 1.3476 (October 16th lows) followed by 1.34 (August 27th highs) and the resistances set at 1.3569 (September 17th highs), 1.3649 (October 3rd highs) ahead of 1.37 (October 17th highs).
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